OPEN-SOURCE SCRIPT
Closing Momentum
Updated
Closing momentum calculates the moving averages of closes and highs vs previous highs plus those of closes and lows vs previous lows to create momentum moving averages. Closes above/below previous highs/lows are weighted more strongly than new high or low wicks above/below a previous highs or lows.
If momentum is up, the background will shade green; brighter is stronger. If momentum is down, likewise with red.
Shifts in momentum are indicated by symbols: triangles indicate a minor shifts, arrows moderate, big arrows major. Likewise, the shade of the symbols indicates strength (darker is stronger).
Using the indicator: long continuous stretches of the same color indicate trend - deeper is stronger. If the shade is lightening or clears and/or if symbols of the other color start appearing, the trend is weakening.
If momentum is up, the background will shade green; brighter is stronger. If momentum is down, likewise with red.
Shifts in momentum are indicated by symbols: triangles indicate a minor shifts, arrows moderate, big arrows major. Likewise, the shade of the symbols indicates strength (darker is stronger).
Using the indicator: long continuous stretches of the same color indicate trend - deeper is stronger. If the shade is lightening or clears and/or if symbols of the other color start appearing, the trend is weakening.
Release Notes
Correction: arrows are minor momentum shifts, triangles are moderate.Release Notes
Changed momentum change colors to be more visible against background: green to blue, red to orange.Update on usage: If momentum arrows are confirmed by movement in that direction, it's likely a signal of a shift in trend. If momentum arrows trigger and price moves the other direction, it's probably a trap.
Release Notes
Replaced obnoxious full-screen color with local fills around candles.Release Notes
Changed the background fill to fill the range between the 5 SMA of highs and 5 SMA of lows. Also colors it pale gray if no momentum.Release Notes
Fixed errorOpen-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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